Weekly Crypto Update, Top 5 Essential Crypto Volatility Indicators, Bitcoin Analysis

Week in Review

Key Highlights in Crypto and Economy

• Crypto Market Wipeout: The cryptocurrency market experienced a significant downturn this week, with a three-day wipeout erasing $500 billion in value. Bitcoin briefly dipped below the $50k mark.
• Wall Street Turbulence: The volatility index (VIX) on Wall Street saw its third-largest spike in history, marking the worst trading Monday since 1987.
• FTX & Alameda Settlement: FTX and Alameda have reached a $12.7 billion settlement with the CFTC, a major development in the ongoing regulatory landscape.
• Bitcoin Accumulation: On-chain data indicates that whales have been heavily accumulating Bitcoin over the past month, with $23 billion flowing into long-term holder addresses.
• NYSE & Ether ETFs: The NYSE has submitted a request to the SEC to list options on three Ether ETFs, signaling growing institutional interest.
• Solana Spot ETF: Brazil’s SEC has approved the world’s first Solana Spot ETF, marking a significant milestone for the crypto market.
• Political Betting Odds: Harris has surpassed Trump on Polymarket, reflecting changing political sentiments.
• Ripple Settlement: The SEC has ordered Ripple (XRP) to pay $125 million in penalties, concluding a years-long lawsuit.
• Economic Updates: U.S. weekly jobless claims fell lower than expected, easing recession concerns, while Australia’s RBA governor indicated potential rate hikes if necessary.
• Dubai Court of First Instance recognised cryptocurrency as a valid payment under employment contracts. This represents a step forward compared to 2023 when a similar claim was denied because of the lack of precise valuation of cryptocurrency.

Technicals & Macro Update

BTCUSD:

Bitcoin ended the week right where it started, hovering at $58,000. The price is compressing into a wedge pattern, suggesting a breakout is imminent, though the direction remains uncertain. A retest of the $55,000 support level is possible, given the pressure from significant order flow events like the Mt. Gox and Genesis disbursements. However, a move towards the $66,000 range is also on the cards, depending on how macro events unfold this week.

Keep an eye on key events like the Democratic National Convention, FOMC Minutes, Jobless Claims, and Powell’s Jackson Hole speech, all of which could influence market sentiment. The upcoming US election is shaping up to be crucial for the crypto market, with Kamala Harris currently leading Trump in the polls. While Trump is perceived as a crypto-friendly candidate, Harris’s proposal to "reset" relations with the crypto sector could bring unexpected benefits.

Despite the short-term uncertainties, other risk assets like the S&P and Nasdaq have had strong performances recently, which could bode well for a crypto rally if the order flow dynamics shift in favor of buyers.

Key Levels to Watch for BTC:

• Support: 50,000 / 55,000
• Resistance: 66,000 / 72,000
• All-Time High (ATH): 73,794

ETHUSD:

Ethereum’s performance this week mirrored that of Bitcoin, with price action remaining largely subdued. Although typically we’d expect Ethereum to follow Bitcoin’s lead in a bullish environment, the uncertainty surrounding the US election and the potential impact of a Strategic Reserve bill have kept us cautious. We remain short-biased on ETHBTC, though the launch of a staking ETF could change the game by offering a new income hedge for investors.

Key Levels to Watch for ETH:

• Support: 2,100
• Resistance: 2,800 / 3,600 / 4,000

What to Watch

• US Democratic National Convention, from Monday till Thursday.
• FOMC meeting minutes, on Wednesday.
• French, German, US and UK PMI reports, on Thursday.
• Jackson Hole symposium, on Friday.

Educational Spotlight with EXOLOGY

Why Understanding Crypto Volatility is Important

In cryptocurrency trading, understanding market volatility is crucial. Traders use volatility indicators to manage risks and navigate unpredictable price swings effectively. This article highlights the top five essential volatility indicators every crypto trader should know., you can read the full article.

Join the vibrant EXOLO community today! Follow us on social media to stay in the loop with our newest product launches and connect with fellow members.

Telegram | Instagram | Linkedin | Youtube | X